Paul Johnson U.S. President Donald Trump is expected to sign an executive order today that would open the door for Americans to include cryptocurrencies, private equity, and other alternative assets in their 401(k) retirement plans, according to a report from Bloomberg.
The executive order reportedly directs the U.S. Department of Labor to revisit existing guidance under the Employee Retirement Income Security Act (ERISA), and to coordinate with federal agencies including the Treasury Department and the Securities and Exchange Commission (SEC) on potential rule changes. These changes would aim to enable the inclusion of crypto and other non-traditional assets in defined-contribution retirement accounts.
The SEC is also expected to be instructed to improve investor access to these alternative assets, which could include bitcoin exchange-traded funds (ETFs) and other cryptocurrency-related products. The order targets an estimated $12.5 trillion currently held in 401(k) accounts and would require regulators to define how plan fiduciaries can safely offer these assets to investors.
This move follows a broader shift in retirement policy under Trump’s administration. In May, the Labor Department reversed previous guidance issued during the Biden administration that discouraged the inclusion of crypto in retirement plans, stating that earlier rules had unfairly influenced fiduciary decision-making.
According to Bloomberg, the new order represents the administration’s most extensive initiative yet to integrate digital assets into retirement planning. On July 17, The Block reported that the White House was considering an executive action to allow crypto, gold, and private equity into retirement accounts.
Demand for crypto in 401(k) plans has persisted despite previous regulatory resistance. In 2022, Fidelity became the first major provider to offer Bitcoin in workplace retirement plans.
If implemented, the order could lead to a significant flow of capital into the crypto market in the coming years. However, plan sponsors and fiduciaries would still be responsible for assessing potential risks associated with asset volatility, custody, and valuation.
